Markets did close near flat yesterday - I were hoping that bulls were stronger and could make a better bounce - but the bulls seems like they have not much to do right now - bears looks like in total control to me right now.
FXE (Euro) hit my target - have been bullish euro over last weeks with the comments of a dollar pullback - we have seen that now - its time to get heavy bullish the dollar and bearish euro - as the euro hit 1.45 target which I think should hold as a "right shoulder" in a topping HS pattern in FXE. FXE has on 30 min chart a TRIPPLE or multiple bearish MACD divergence which is really bearish - this means that the euro is going to fall hard soon , and we have a bullish MACD divergence on dollar - which means dollar is going to rally hard soon..
If thats true - the next move to come is a big fat downleg in euro , which would indicate markets could see below 1250 next weeks.
Right now still holding all my size position in TZA 34-35 and ZSL 16.6 - both looks like about to go to me.
So what would bring the euro down this hard and dollar up? I dont really know - just based on charts I see a good posibility what is forming now , I may be wrong if we see a major rally more in euro , but have the feeling that dollar bottomed and euro about to top here, look for a reversal soon...
If I'm wrong I will take my profits in TNA which I am already up from and ZSL , but only doing this if I am wrong and will post on twitter what I think intraday live. IMO short commodities , silver and gold - all gonna fall...
For todays trading - looks like we could see another major drop in markets probably below 1300 ? Will the lows from last time hold ? I dont think so.....be prepared for a storm
Got an interesting chart from ETF corner with the similarity from 2010 and today - which indicates the next move is down below 1250.... just saying ...
Have a nice day
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